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Tuesday, June 18, 2013

Despite Legislative Setback, Daytona Redevelopment Will Proceed

International
Speedway Corporation has announced the approval of
funding to redevelop the frontstretch of Daytona International Speedway, to
enhance the overall experience for fans, marketing partners and the motorsports
industry. The multi-year project will break ground on July 5 of this year, and
is targeted for completion in January of 2016, in time for the 54th Rolex 24 At
Daytona and the 58th DAYTONA 500.

“We are truly creating
history with this unprecedented endeavor,” said ISC’s Chief Executive Officer
Lesa France Kennedy. “I commend the board’s decision to move forward on our
plan to redevelop the Company’s signature motorsports facility, thereby shaping
the vision of Daytona for the next 50 years.

“The decision was made with
strong consideration of the current macroeconomic condition and a clear view
for our long-term growth,” Ms. France Kennedy continued. “This significant
private investment… will ensure the long-term viability of the iconic speedway,
and when completed, will contribute favorably to the Company's revenues, as
well as to our community and the sport as a whole.

ISC's Lesa France Kennedy

“The redevelopment of
Daytona International Speedway reaffirms its status as the ‘World Center of
Racing’ for years to come,” said France Kennedy. “It is imperative that we
build upon my grandfather’s vision to create a world-class facility with
premium amenities to provide unparalleled experiences for our guests and
partners. Doing so will ensure that the DAYTONA 500 and all our other events
continue to drive our business while serving as a significant economic engine
for the region.”

The redevelopment is
expected to cost between $375 million and $400 million, excluding capitalized
interest. ISC was denied recently in its bid to forge a public/private partnership
with the State of Florida during the most recent legislative session, forcing
ISC to reduce the scale of its redevelopment plan. A proposed mixed-use development
across from Daytona International Speedway remains in the planning stage,
subject to a number of approvals.

The Daytona frontstretch will
include five expanded and redesigned fan entrances along International Speedway
Boulevard. Each entrance will lead directly to a series of escalators and
elevators that will transport fans to three different concourse levels, each
featuring strategically-placed social "neighborhoods" along the
nearly mile-long frontstretch.

A total of 11 neighborhoods,
each measuring the size of a football field, will include an open-sightline
design and dozens of video screens, enabling fans to meet and socialize without
missing any on-track action. The central neighborhood, dubbed the "World
Center of Racing," will celebrate the history of Daytona International
Speedway and its many unforgettable moments throughout more than 50 years of
racing.

Existing frontstretch seats will
be replaced with wider and more comfortable seating, and more restrooms and
concession stands will be constructed throughout the facility. At the
conclusion of the redevelopment, Daytona International Speedway will include
approximately 101,000 permanent seats, with the potential to increase permanent
seating to 125,000.

Construction will begin
after the Coke Zero 400 weekend in July,
but next year’s Budweiser Speedweeks, Daytona Supercross by Honda, Daytona 200
and Coke Zero 400 Powered by Coca-Cola, will be held as scheduled. There will be no capacity changes for the 2014
DAYTONA 500. The eventual decrease in capacity will occur in stages following
the DAYTONA 500 and will include the complete removal of the backstretch
grandstand by the start of the 2016 season. The new frontstretch will also include
53 suites offering superb views of the track.

“We will take great care of our loyal existing
customers throughout this renovation,” said ISC President John Saunders today. “They
can expect to receive additional direct communication as we proceed with
construction.”

Daytona International
Speedway and ISC's operations in Daytona Beach generate $1.6 billion in annual
economic benefit to the state of Florida.

A major overhaul of the
speedway’s midway was tabled when the Florida legislature declined to help fund
the project. “It is unfortunate we are forced to scale back some elements,” said
Saunders, “but the project will be designed for additional enhancements should
future economic incentives present themselves.”

He said ISC will pursue incentives,
“including those currently available to all other major sports venues in
Florida,” in 2014, and will reevaluate additional projects based on the outcome
of those efforts.